Zacks Investment Research downgraded shares of GameStop (NYSE:GME) from a hold rating to a sell rating in a research report report published on Tuesday morning.

According to Zacks, “Shares of GameStop have declined and underperformed the industry in the past six months. The company, which has been holding exploratory talks relating to a potential transaction, has been grappling with falling sales in core business, affected by intense competition and leadership issues. Meanwhile, gradual shift to digital and mobile downloads is posing a threat to its software business. We also note that the company’s Technology Brand has been witnessing soft sales since the past few past few quarters. In first-quarter fiscal 2018, sales in this segment fell 16.1%. This may be due to overlap in AT&T’s dealer compensation structure and lower promotional activity. Nevertheless, GameStop has been undertaking several initiatives to augment revenues. Also, we are encouraged by the rise in collectibles sales buoyed by continued expansion of licensed merchandise offerings and unique product offerings.”

GME has been the topic of several other research reports. Credit Suisse Group set a $15.00 price target on shares of GameStop and gave the company a hold rating in a research report on Tuesday, May 22nd. Benchmark reduced their price target on shares of GameStop from $12.00 to $10.00 and set a sell rating on the stock in a research report on Friday, June 1st. Wedbush reaffirmed a buy rating and set a $19.00 price target on shares of GameStop in a research report on Tuesday, May 29th. Telsey Advisory Group reduced their price target on shares of GameStop from $15.00 to $14.00 and set a market perform rating on the stock in a research report on Friday, June 1st. Finally, Jefferies Financial Group initiated coverage on shares of GameStop in a research report on Monday, July 9th. They set a buy rating and a $18.00 price target on the stock. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $16.23.

GME opened at $13.58 on Tuesday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.45 and a current ratio of 1.52. GameStop has a 1-year low of $12.20 and a 1-year high of $20.97. The company has a market capitalization of $1.43 billion, a price-to-earnings ratio of 4.54 and a beta of 1.26.

GameStop (NYSE:GME) last released its quarterly earnings results on Friday, June 1st. The company reported $0.38 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.37 by $0.01. The firm had revenue of $1.93 billion for the quarter, compared to analyst estimates of $1.96 billion. GameStop had a net margin of 0.04% and a return on equity of 13.92%. The business’s revenue for the quarter was down 5.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.63 EPS. sell-side analysts forecast that GameStop will post 3.08 EPS for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in the company. Fortis Advisors LLC acquired a new stake in GameStop in the 2nd quarter valued at approximately $144,000. Eads & Heald Wealth Management acquired a new stake in GameStop in the 2nd quarter valued at approximately $147,000. XR Securities LLC acquired a new stake in GameStop in the 2nd quarter valued at approximately $150,000. Laurel Wealth Advisors Inc. acquired a new stake in GameStop in the 1st quarter valued at approximately $131,000. Finally, Bristol Advisors LLC acquired a new stake in GameStop in the 2nd quarter valued at approximately $163,000.

GameStop Company Profile

GameStop Corp. operates as a multichannel video game, consumer electronics, and wireless services retailer. It operates in five segments: United States, Canada, Australia, Europe, and Technology Brands. The company sells new and pre-owned video game hardware; video game software; pre-owned and value video games; video game accessories, including controllers, gaming headsets, virtual reality products, memory cards, and other add-ons; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards, and digitally downloadable software.

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